{"rewrite":{"id":"r_efebbc4b7e6e61f6f46cd358","clusterId":"c_cd04552b4e255e16dda5c442","slug":"funds-startups-backs-hot-spring-algae-startup-onsoh-via-convertible-bonds","model":"deepseek-v4-1-flash","headline":"Funds Startups Backs Hot Spring Algae Startup ONSOH via Convertible Bonds","summary":"Funds Startups Inc. said its Fund No. 2 investment partnership has funded ONSOH Inc. through convertible bonds, the first convertible bond financing by the company and the funds it manages. ONSOH, based in Beppu, Oita Prefecture, develops RG92, a bio-material for livestock and aquaculture feed made from microalgae that grows in the area's hot springs. Fund No. 2 closed its first close at the end of June 2026.","whyItMatters":"The deal tests whether venture debt and convertible bonds can carry a regional deep tech startup from lab validation toward mass production without the equity dilution that comes with repeated share sales.","webCardHtml":"\u003cp\u003eRG92 is drawn from a proprietary strain of microalgae that grows in Beppu\u0026#39;s high-temperature, high-mineral hot spring water. ONSOH is testing the material on cattle, pigs, chickens, and fish, with verification at universities, research institutions, and production sites, and is selling overseas in markets including India and Southeast Asia.\u003c/p\u003e\u003cp\u003eFund No. 2 is set up as an all-stage deep tech debt fund, pairing venture debt, subsidy bridge financing, and convertible bonds with share acquisition rights. ONSOH\u0026#39;s stated mission is to improve livestock and aquaculture health without leaning on antibiotics.\u003c/p\u003e","blueskyPost":"Funds Startups' first convertible bond deal backs ONSOH, whose RG92 feed material depends on microalgae grown in Beppu's hot springs, so the investor is betting on a supply tied to one region's water.","twitterPost":"ONSOH's RG92 feed material relies on microalgae from Beppu's hot springs, so Funds Startups' first convertible bond deal carries a supply tied to one region.","threadsPost":"Funds Startups is putting its first convertible bond financing into ONSOH, whose RG92 feed material comes from microalgae grown in Beppu's hot springs. The capital is straightforward. The production base is one region's hot spring water, and that is the part scaling has to solve.","newsletterBlurb":"Funds Startups has backed ONSOH, a Beppu company developing RG92, a feed bio-material made from microalgae grown in hot spring water. The funding came through convertible bonds, which the firm says is a first for it and its funds. ONSOH is testing RG92 across livestock and fish and expanding sales in India and Southeast Asia.","attributionJson":"[{\"source\":\"ASCII.jp\",\"url\":\"https://ascii.jp/elem/000/004/449/4449126/?rss\",\"title\":\"Funds Startups Invests in ONSOH, a Hot Spring Algae Biotech Startup, via Convertible Bonds\"}]","lintFlagsJson":null,"lintHits":0,"costUsd":0,"inputTokens":5460,"outputTokens":713,"status":"published","repairAttempts":0,"nextRepairAt":null,"factsAttemptedAt":1793935201,"createdAt":"2026-11-06T03:15:58.000Z","publishedAt":"2026-11-06T03:18:55.000Z","updatedAt":"2026-11-06T03:18:55.000Z"},"cluster":{"id":"c_cd04552b4e255e16dda5c442","canonicalTitle":"Funds Startups、温泉藻類バイオスタートアップONSOHへCBによる投資を実行","representativeArticleId":"a_f0a39f91a5824381d59be6a5","sourceCount":1,"writtenSourceCount":1,"writeAttempts":0,"isSolo":true,"entitiesJson":"{\"anime_titles\":[],\"manga_titles\":[],\"work_titles\":[],\"studios\":[],\"people\":[],\"type\":\"business\",\"domain\":\"other\",\"is_roundup\":false}","contentType":"news","status":"published","firstSeenAt":"2026-11-06T01:00:27.000Z","lastSeenAt":"2026-11-06T01:00:27.000Z","updatedAt":"2026-11-06T03:18:53.000Z"},"attribution":[{"source":"ASCII.jp","url":"https://ascii.jp/elem/000/004/449/4449126/?rss","title":"Funds Startups、温泉藻類バイオスタートアップONSOHへCBによる投資を実行"}],"entities":{"anime_titles":[],"manga_titles":[],"work_titles":[],"studios":[],"people":[],"type":"business","domain":"other","is_roundup":false},"keyFacts":["Funds Startups Inc. provided funding to ONSOH Inc. through convertible bonds via its Fund No. 2 partnership.","ONSOH develops RG92, a bio-material for livestock and aquaculture made from microalgae derived from Beppu hot springs.","Funds Startups says the deal is its first convertible bond financing and the first for the funds it manages.","Fund No. 2 completed its first close at the end of June 2026.","ONSOH is based in Beppu City, Oita Prefecture, and is expanding into markets including India and Southeast Asia."],"pageLinks":{"healthSlugs":[],"storySlugs":[],"entities":[],"stories":[],"entitiesOk":true,"storiesOk":true}}